AUD/FJD Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average, with no clear driving factor.
Key drivers:
• Rate gap: The Reserve Bank of Australia is signaling possible rate hikes due to rising inflation, while the Reserve Bank of Fiji's growth outlook is stable, putting upward pressure on the AUD against the FJD.
• Risk/commodities: Recent positive data from China has boosted AUD demand, as Australia relies on exports to its largest trading partner.
• One macro factor: Upcoming Australian economic indicators like CPI and Labour Force reports could further influence the AUD’s direction, adding to uncertainty.
Range: Movement is likely to hold within the recent range as the AUD maintains strength but lacks a strong directional driver.
What could change it:
• Upside risk: A stronger-than-expected Australian economic data release could boost the AUD further.
• Downside risk: Any negative shifts in China’s economic recovery could pressure the AUD and influence the AUD/FJD rate.
